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Review of Trading Futures at Exante

Trading futures can be a successful strategy for investors seeking to manage risk and diversify their portfolio. Exante, a professional broker that was founded by Alexey Kirienko, Gatis Eglitis Exante, and Anatoly Knyazev, provides instant access to a broad range of futures markets, presenting it as an excellent option for investors looking to join this market.

What are Futures?

Futures are financial contracts that enable investors to trade an asset at a set price on a specific date in the future. These contracts are mostly employed to hedge against price fluctuations in commodities, such as oil, gas, or even grain. Futures contracts can also serve as a tool for speculating on the price movements of financial instruments such as stocks, currencies, or indices.

Futures contracts are fixed, which means that they have a predetermined expiration date and a fixed price. This makes the process of trading much easier and offers traders an explicit understanding of the terms of the contract. Buyers and sellers of futures contracts convene on exchanges, such as the Chicago Mercantile Exchange (CME), to engage in trading these contracts.

Why Trade Futures?

Traders essentially use futures contracts to manage risk. These risks can be managed through several ways:

Hedging

One of the most common ways that investors utilize futures to manage risk is through hedging. Hedging includes taking a position in a futures contract that is opposite to an existing position in the underlying asset. For example, if a farmer is worried about the price of oats, thinking it will fall before the harvest, in this case, he can sell a futures contract to lock in a price. If the price of oats falls, then the farmer will make a profit on the futures contract that compensates for the loss on the sale of the physical corn.

Speculation

Another way of reducing risks is through speculation. Traders would use futures contracts to speculate on price movements in the underlying asset. For instance, provided that a trader expects that the price of gold will rise, he/she will buy a futures contract that grants them the right to buy gold at a set price in the future. If the price of gold does rise, the trader can sell the futures contract at a profit.

Arbitrage

Arbitrage entails making use of price discrepancies between different markets. For instance, if the price of a futures contract on the S&P 500 index is trading at a lower price than the index itself, a trader can buy the futures contract and sell the index to lock in a profit.

Spreading

Investors use futures contracts to manage risk through spreading. Spreading entails taking opposing positions in different futures contracts, which are related to the same underlying asset. For instance, a trader can choose to take a long position in a futures contract on crude oil and a short position in a futures contract on gasoline. This way the trader reduces the risk of price fluctuations in the underlying asset.

There are several benefits to trading futures on Exante’s platform:

Direct Access to a broad Range of Futures Markets

Exante provides direct access to a wide range of futures markets, including those in the US, Europe, and Asia. Accordingly, you can diversify your portfolios and access markets that may be inaccessible through other brokers.

User-Friendly Platform

Exante’s platform is simple and easy to use, even for inexperienced traders. It offers advanced search and comparison tools that enable traders to find the futures contracts that best meet their investment goals quickly and smoothly.

Real-Time Market Data and News

At Exante, you will be provided real-time market data and news, allowing traders to make data-driven trading decisions. This covers real-time price updates, market trends, and other significant information that can influence the performance of a trade.

Customized Alerts

Traders can create customized alerts to inform them when their trades hit certain price levels or other criteria. This can encourage traders to carefully monitor their trades and modify their strategies as needed.

Regulatory Compliance and Industry Reputation

Exante is a multi-licensed broker, supervised by several regulatory bodies, including CySEC (Cyprus), FCA (UK), and SFC (Hong Kong). This guarantees that the broker operates according to strict standards and regulations, assuring the traders that their personal information is safeguarded.

Conclusion

For investors seeking to manage risk and diversify their portfolio, trading futures can be a beneficial strategy. Exante’s platform offers direct access to a diverse range of futures markets, making it an ideal platform for those who wish to enter this market. The platform is user-friendly and provides traders with comprehensive information to facilitate informed trading decisions.

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